Kirkpatrick v. City Bd. of Ed. of Russellville

• Decision Date: 17 June 1930
• Citation: 234 Ky. 836
• Parties: Kirkpatrick v. City Board of Education of Russellville et al.
• Court: United States State Supreme Court — District of Kentucky

Page 836

234 Ky. 836

Kirkpatrick v. City Board of Education of Russellville et al.

Court of Appeals of Kentucky.

Decided June 17, 1930.

Schools and School Districts. — Contract to sell school site to corporation with option to lease and repurchase held valid and not violative of constitutional debt limitation (Constitution, secs. 157, 158).

School building having been condemned by fire marshal, city board of education, to meet emergency, sold school site to corporation which agreed to erect school building thereon and to lease property to board from year to year, not exceeding twenty years, at annual rental within constitutional debt limit of board, which rent should be used to discharge bonds secured by mortgage on property used for construction of building, with option in board to require reconveyance on discharge of mortgages and all other liens and claims and providing that if board should not occupy premises for entire twenty years, property should be sold and proceeds used to pay liens, and to pay surplus to board.

Appeal from Logan Circuit Court.

G. SAMUEL MILAM for appellant.

SELDEN Y. TRIMBLE and COLEMAN TAYLOR for appellees.

OPINION OF THE COURT BY JUDGE CLAY.

Affirming.

This is a proceeding under the Declaratory Judgment Act (Acts 1922, c. 83) to test the validity of a plan by which it is proposed to finance the construction of a high school in Russellville, a city of the fourth class. The case is here on appeal from a judgment upholding the plan.

The facts are these: It is admitted that the frame building in which the school is now conducted is in a dangerous condition, and has been condemned by the fire marshal. To meet the emergency, the city board of education has sold and conveyed to a corporation known as the Russellville School Improvement Corporation a site which it acquired and held for school purposes. The terms and conditions on which the sale and conveyance have been made are these: The Russellville School Improvement Corporation proposes, and has agreed, to construct on the site a new school building, and to incumber the property in a sum not exceeding $75,000, for which it will issue its interest bearing bonds, notes, or other obligations secured by a mortgage on the property. It proposes to lease the property to the city board of education for a term of one year, with the privilege of renewal from year to year for a period not exceeding in all twenty years. The annual rental is not to exceed $6,000, and it is...